Research Article

Available Online at http://www.recentscientific.com International Journal of CODEN: IJRSFP (USA) Recent Scientific

International Journal of Recent Scientific Research Research Vol. 8, Issue, 8, pp. 18920-18923, August, 2017 ISSN: 0976-3031 DOI: 10.24327/IJRSR Research Article

VALUE CHAIN ANALYSIS OF CRICKET BATS MANUFACTURING INDUSTRY IN KASHMIR

Bilal Ahmad Dar and Imtiyaz-ul-Haq

Department of Economics, University of Kashmir

DOI: http://dx.doi.org/10.24327/ijrsr.2017.0808.0593

ARTICLE INFO ABSTRACT

Article History: The Industrial Sector is now playing its due role in the economic development of the State and in generating employment opportunities for the unemployed youth. Previously it used to be only the Received 17th May, 2017 th Handicrafts, Handlooms and Cottage Industry providing livelihood to a large population at different Received in revised form 21 stages of production, sale and export. Cricket bat industry is considered to be one of the important June, 2017 industries in Kashmir. Industrial sector contributes 25.87% to GSDP of State at constant 2004-05 Accepted 28th July, 2017 th prices as per Advance estimates for the year 2014-15(A). The State has 53 existing industrial estates Published online 28 August, 2017 spread over an area of 31335 Kanals of land as per position ending November, 2014. The cricket bat industry in Kashmir is already employing over 10,000 people and collectively exports nearly a Key Words: million cricket bats per year at a price ranging from Rs 250-2000. The main objective of this study Sustainable, Entrepreneurial, Venture, is to determine whether cricket bat industry is sustainable entrepreneurial ventures. The study also Tapped, Manufacturing Cluster, Value aims to document the value chain analysis of cricket bat industry in Kashmir valley. The present Chain study was carried out in a bat manufacturing cluster (Anantnag), which is composed of about 195 units, concentrated on the Jammu Srinagar national highway.

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INTRODUCTION be from Sialkot Pakistan. The technical know-how was imported from England. This trade flourished in those areas of The state of Jammu and Kashmir is a core of good mineral Kashmir where raw material was substantially available. Those base, substantial water resources and is famous world over in persons, who at that time were financially sound, established its handicrafts, tourism, cottage industries and wood base their units at Halmullah in Tehsil Bijbehara of district industries. The valley offers a distinct free environment which Anantnag. More and more people especially at Halmullah, is perfect for the development of industrial units. Many small Sangam, Sather, Bijbehara in district Anantnag got attracted and medium scale industries have come up basically in the towards this trade and established their own units because of traditional sector along with some new areas like food the reasons: processing, agro based units, wood based units etc. The total number of permanently registered small scale industrial units 1. That the employment was easily available without any (SSI) at the end of Nov. 2010 stood at 53157, generating bar of academic qualification. 247065 employment opportunities. Out of these SSI units, 526 2. That the raw material was readily available in this belt units were registered during the year ending Nov., 2010, in abundance. providing employment to 3654 persons (Economic survey 3. That the demand from outside the state for cricket bats 2014-15). was quite attractive as this area lies on the National Highway. Kashmir (India) possesses substantial resource in men and materials which if tapped and mobilized by judicious planning The mechanical devices/machinery was readily available with will result in the development of small scale industries which certain people and was also imported from Meerut and can confidently look to the market both in India and abroad. Jalandhar. In the process of interstate trade, the Kashmir people Giving suitable guidance and necessary facilities, the people of succeeded in producing the quality finished products on the Kashmir can easily produce sophisticated goods in a cost basis of their skill, technique, experience and this industry in effective manner. the beginning was engaged in exporting the finished as well as semi-finished products to other states of the country. One of the important wood based industries is Cricket Bat industry. The origin of the industry in Kashmir is supposed to

*Corresponding author: Bilal Ahmad Dar Department of Economics, University of Kashmir Bilal Ahmad Dar and Imtiyaz-ul-Haq., Value Chain Analysis of Cricket Bats Manufacturing Industry In Kashmir

Up to 1975-76, this business was going on the said pattern but REVIEW OF LITERATURE the state government realized the fact that the precious raw In order to gain background knowledge of problem and to material of Kashmir willow is being sold in raw form by identify appropriate methodology, research design, methods of Kashmir based unit holders. The Government became measuring concepts and techniques of analysis to be able to conscious that if the raw material is allowed to go like this, the formulate the problem precisely, it seems logical to present a precious Kashmir willow will not be left for more time and the brief review of the available literature relating directly or people engaged in the trade for manufacturing the cricket bats indirectly to the field under study. have to close their units for want of raw material. Imtiyaz and Bilal (August 2013)3, the authors highlighted that The cricket bat industry has an impressive reputation of making the fast economic development everywhere has been made bats which are exported outside. The cricket bats are mostly possible essentially due to rapid industrialization. The manufactured from Willow trees. Presently the cricket bat important factors which favour rapid industrialization as a industry has turnover of Rs114.4 crore per year1. It is important means to fast economic growth are; higher productivity of to mention here that during the course of more than one century labour than in agriculture, more easy availability of industrial of making bats, Kashmir has gained a name and fame. In 1975 surplus for investment. The industrial sector contributes to 1980, there were only 25 units of cricket bats in district significantly to the achievement of a self sustaining economy Anantnag and Pulwama of Kashmir division. It has grown to with continued higher levels of investment, rapid rate of 273 units by the end of March 2009, in which district Anantnag 2 increase in income and employment. alone has 195 units . Each unit manufactures on the average 14000 bats per annum (Imtiyaz and Bilal August 2013) The Bilal et al. (September 2012)4, the study explains that Cricket cricket bat industry in Kashmir is already employing thousands bat industry has a tremendous potential of absorbing un- of people and collectively exports thousands of cricket bats per employed educated youth and contributes significantly to the year at a price ranging from rupees two hundred fifty to two state’s economy. thousand per bat. (Dar Bilal et al. 2014)

3 “Impact of disturbances on cricket bat manufacturing industry in Kashmir valley”, International journal of research in social science, volume-3, issue-3 pp 175-183, 1 Directorate of Industries and commerce Jammu and Kashmir 4 Growth, performance and challenges of cricket bat industry of Kashmir India, 2 Diagnostic study report of cricket bat manufacturing cluster in district Anantnag International Journal of Educational Research and Technology, Volume 3 (3) 18921 | P a g e International Journal of Recent Scientific Research Vol. 8, Issue, 8, pp. 18920-18923, August, 2017

The biggest handicap of the industry is the willow, as the main girth willow logs are used for making shooks i.e. wooden boxes raw material itself, which takes decades to grow to the size popular for apple packing. On an average the normal rate of required for making bats. willow cleft is Rs. 100 per piece. The natural seasoning of the willow cleft takes around 7-12 months which means that the Imtiyaz and Bilal (February 2014)5, the study depicts that working capital gets blocked for this period, which hampers the Cricket Bats manufacturing industry is a very prominent business cycle. However, if the cluster sets up its own segment of the sports goods industry in Kashmir valley. Cricket seasoning plant then the willow clefts can be dried within 24- bats are manufactured from willow wood which is found in 36 hours and thus making a huge difference in the working abundance in Kashmir valley owing to its peculiar climatic capital flow. When the seasoning of the cleft is completed, the conditions. Although, this industry has got promising prospects clefts are shaved on an electric saw according to the required to flourish due to huge demand-supply gap, yet its growth has length of bat and a wedge fashioned cut is also made in the remained, by and large, restricted to District Anantnag only. willow cleft to fit the cane or wooden handle. This is followed With this backdrop, the study was conducted to actually by planning with the help of wooden/hand planner. The normal examine the status and viability of this industry. rate for machining a cleft for making a rough blade is Rs. 3. Matoo Javid, (June 2009)6, points out that cricket bat Therefore, the average rate of willow cleft after machining manufacturing cluster is mostly concentrated in a 15 km radius comes out to be Rs. 103 (Rs.100+3). The clefts are then graded along Jammu and Kashmir national highway between for manufacturing of season bats. The blades are pressed to Bijbehara and Awantipora, due to which more and more people make the wood flexible. This is a skill full job and hence is especially from Halmulla, Sangam, Sether, Bijbehara, done by an expert craftsman of the unit. Majority of the Miirzapora etc places of District Anantnag got attracted damages occur during pressing. The season bats are more towards this trade. The author also highlights that Cricket bat pressed as compared to tennis bats. While compensating the industry has a tremendous potential of absorbing unemployed damages made, the average rate of pressing is fixed around educated youths and can contribute to the GSDP. The Cricket Rs.4 for season bat blade and Rs.2 for tennis bat blade. To the bat industry will jump into national and international arena and season bat, a cane handle is fitted and based on the quality of create a place for the industry in competitive international cane, rubber strips and the number of pieces in the handle, its market. cost varies from Rs.50 to Rs.70. Then the cost of Rs.3 for twine and glue is added and finally the cost of a seasoned Objective of the Study cricket bat reaches around to Rs.157 to Rs. 177. While the cost 1. To evaluate costs at different stages of production of of tennis bat fitted with a wooden handle (costing from Rs 10- cricket bats. 15) and the twine for Rs.2, comes out to be around Rs.115 to 2. To study value chain analysis of cricket bat Rs 120. The sanding, polishing, stickers, and packing as shown manufacturing enterprise. in the figure will bring the cost of the seasoned cricket bat to Rs.252 to 272, while the cost of tennis bat will come to Rs.148 METHODOLOGY to 158. There are other input costs like capital, labour, transport

The study is based on both primary and secondary sources of and other costs, which comprises about Rs 100 for seasoning information. Information related to Value chain analysis of bat and Rs 50 for tennis bat. Therefore total cost per bat is cricket bat manufacturing industry in Kashmir has been estimated to be Rs 352 to 372 for seasoned bat and 198 to 298 compiled from field survey. The sources of secondary data for tennis bat. The selling price of the seasoned cricket bats include Diagnostic Study Report of Cricket bat Cluster, District ranges from Rs.250- 2000, with an average price of Rs 700 per Industries Centre, Anantnag, magazines, journals etc. The bat and that of the tennis bat is around Rs. 300-350, with an value chain analysis has been used to know about the value average price of Rs 250 per bat. (Dar bilal et al. 2014) additions at various stages of manufacturing of cricket bats. Therefore, the study reveals that returns per rupee of invest of this manufacturing enterprise 1.4 for seasoned bat and 1.2 for Value Chain Analysis tennis bat.

The above flowchart depicts the value chain of the cricket bat- Market Mechanism manufacturing units in the Anantnag. It describes the amount of value addition done at each stage of processing. The main Marketing has rightly been regarded as the key to the success activities involved are: of modern business. This view if further corroborated by Peter Drucker, who says that “there is only one valid definition of  Procurement of raw material i.e. willow clefts business purpose to create a customer.” He further says,  Processing of willow clefts for manufacturing of “Because it is its purpose to create a customer, any business cricket bat enterprise has two- and only these two- basic functions;  Importing of cane handles. marketing and innovation.

The price of round cubic feet of willow logs in the market is Rs Marketing is a comprehensive process of bridging the gap 250 to Rs.300.00 on cash payment while the price can increase between the producer and consumer. It “is the creation and by Rs 50-100 on credit basis. The willow logs having girth delivery of a standard of living.” Marketing is a dynamic sense more than 34 inches are sawn for willow clefts and the smaller involves; finding out what consumers want; then planning and developing a product or service that will satisfy those wants, and then determining the best way to price, promote and 5 Cost and return analysis of Cricket bats manufacturing Industry in Kashmir Valley of India, Iosr journal of economics and finance volume 3, issue 1. Vol. I, pp 20-31, distribute the product or service Barthwal.R.R, (2008), P- 272. 6 “Small Industries Cluster Development Programme, An Appraisal of Cricket Bat Cluster Sether Anantnag”, Quarterly Development Journal, Janib-i-Manzil 18922 | P a g e Bilal Ahmad Dar and Imtiyaz-ul-Haq., Value Chain Analysis of Cricket Bats Manufacturing Industry In Kashmir

The Kashmir willow cricket bats are sold to other Indian states References like Punjab, Uttar Pradesh, Delhi, Maharashtra, Madhya Praesh, Gujarat, Chennai, Bangalore, Hyderabad and Kolkata 1. Bilal et al. (2012) “Growth, Performance and Challenges etc. Among the forward linkage members, there are marketing of Cricket Bat Industry of Kashmir”, International agents, direct marketing and large industries. Most of the Journal of Educational Research and Technology, marketing is done through the marketing agents. However, the Volume 3 [3] September 2012: 01 - 04 unit holders along with their produce visit the Indian cities to 2. Barthwal.R.R, “Industrial Economics”, New Age sell their product directly in the market. The willow clefts are International Publishers, New Delhi, 2008, P- 272. supplied in lacs of numbers to Jalandhar, Jammu and Meerut 3. Detailed Project Report of Common Facility Centre based cricket bat-manufacturing units. It is worth mentioning Sether Anantnag (2009): Directorate of Industries and here that almost 80% of the world production of cricket bats is Commerce, Jammu and Kashmir. done in India for which the willow is supplied from Kashmir 4. Diagnostic Study Report of Cricket Bat Manufacturing Cluster, (2010): District Industries Centre (DIC), CONCLUSION Anantnag. 5. Harilal.K.N, Kanji Nanneen, Jeyaranjan.J, Eapen and The cricket based industry will provide employment to large Swaminanethan, “Power in Global Value Chain: number of skilled, semiskilled and unskilled people. The Implications for Employment and Livelihood in Cashew industry has readily available raw material especially willow Nut Industry in India”, International Institute of and poplar for manufacturing of cricket bats. Other allied sports Environment and Development (IIED), 2006. goods item like cricket balls, gloves, leg guard, for which raw 6. S.F.Ahmad, “Problems and Prospects of Cottage material in the shape of sheep skin hides is available in Industry in India”, Anmol Publications New Delhi, 1989. abundance in the valley, the matter is the only providing the P- 87. necessary know-how. Realizing the scope of the industry, State 7. Sharma, J.P; “Small Scale Industry, Problems and Govt. should take initiatives by providing the industrial unit Prospects”, Anmol Publications, New Delhi, 1990, p- holders such kind of facilities which will encourage them to 139. producing more at least cost and also helps them to export more and more products to outside as well as ease their work.

Therefore, cricket bat industry will jump into national and international arena and create a place for the industry in competitive international market.

How to cite this article:

Bilal Ahmad Dar and Imtiyaz-ul-Haq.2017, Value Chain Analysis of Cricket Bats Manufacturing Industry in Kashmir. Int J

Recent Sci Res. 8(8), pp. 18920-18923. DOI: http://dx.doi.org/10.24327/ijrsr.2017.0808.0593

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